Netflix Analysis

Industry Drivers

The intent of this analysis is to discuss the key industry drivers that are creating opportunities and threats for Netflix (NASDAQ: NFLX), in addition to defining the future of the mail-based and online movie rental subscription service. Competition from Video-On-Demand (VOD) services offered by cable television companies including Time Warner Cable, Comcast and others, combined with kiosk delivery network Redbox and the vertical integration of Blockbuster are fundamentally reordering the industry today

(Netflix Investor Relations, 2013). Competition continues to accelerate as each of these competitors invest in research & development (R&D) to increase the performance and reliability of their individual services.

Of the myriad of economic factors that impact their business, Netflix senior management is most concerned and tracks through weekly reporting the level of consumer spending on entertainment in aggregate and for DVID, game and video rental specifically (Netflix Investor Relations, 2013). Additional external factors...
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